LG Display Reduce Fab Utilization Rate

DigiTimes:

Large-area panel makers are reducing output hoping to boost slumping panel prices. Among them, LG Display (LGD) has reportedly reduced its 8.5G plant utilization rate, with the possibility of a further cut to 50-70% in fourth-quarter 2011.

TV demand continues to be weak. Just look at U.S. national retailer Best Buy’s latest quarterly results: profits were down 30%. Utilization rate reductions will need to more than offset the decline in demand for big display items like TV. But I would think LGD will need all the manufacturing capacity it can handle with demand for its IPS displays increasing thanks to the iPhone 5 (or iPhone 4S) that will be soon announced and the iPad 2, which is going on strong.